William MacDougall endorses new proposals by Conservatives to provide a fairer deal for Tottenham pensioners 10/07/04l

Tottenham Conservatives call for five-point plan to tackle growing pensions crisis

William MacDougall, the Conservative Parliamentary Candidate, endorsed new proposals by Conservatives to provide a fairer deal for current and future pensioners across Tottenham.  At the same time, MacDougall warned that if urgent action was not taken, living standards of pensioners would plummet, companies around Tottenham could go bankrupt, and council taxes could soar
further to pay for local government pension schemes now in deficit.

MacDougall - who works as a pension consultant - explained:

"I am growing increasingly concerned about the pending crisis in pensions.Workers across Tottenham are being shut out of final salary pension schemes and fewer people are saving for retirement. Current pensioners are finding it more difficult to get by, with council taxes soaring by far more than their yearly increase in their state pension."

Under the five-point plan, outlining practical policies to address the pensions crisis:

1- The basic state pensions would rise each year by earnings, rather than price inflation.
2- Means-testing, bureaucratic and humiliating to many pensioners, would be reduced.
3- The obligation for pensioners to buy an annuity would be abolished.
4- Company pensions would receive greater support by Government taking on more risk.
5- A new, flexible 'Lifetime Savings Account' would be created to encourage people to save.

MacDougall added,

"It is not just the elderly who will suffer from the looming crisis. I was very concerned when I was a Member of Haringey Council about the ballooning deficit in the Council workers' pension scheme.  Councils across the country could increasingly be forced to increase council taxes to fund their
pensions black hole - in turn, higher local taxes will make the plight of pensioners even worse.  Conservative policies show a clear commitment to promoting dignity and security for Britain's present and future pensioners."

Notes to Editors

The proposals to tackle the pensions crisis were announced by Conservatives
on 5 July.
http://www.conservatives.com/news/article.cfm?obj_id=109539&speeches=1

The proposals include:

1 - Increasing the basic state pension with earnings & less means-testing
Conservatives will increase the basic state pensions in line with earnings,
not prices, to narrow the gap between the state pension and means-tested
benefits. As pensioners no longer rely on the means test, their savings will
be freed from Government scrutiny. A pound saved for retirement will then
mean a pound more income in retirement.

By linking the pension to earnings, a Conservative Government would increase
the single person's pension by £7 a week, and £11 for a couple, on top of
price inflation over four years. As we raise the basic state pension in line
with earnings, fewer pensioners will need to claim Pension Credit. A million
pensioners can be freed from the means-tested credit during the first term
of the next Conservative Government.

2 - New incentives to save
Conservatives will create a new Lifetime Savings Account, open to everybody.
People who put money into it would have their savings boosted by a
government contribution. Savers would receive the full value of the fund in
retirement. Unlike some other products, this would be flexible, allowing
ongoing access to savings. So if money is needed, savings are not trapped in
the account.

3 - Annuity reform
At present, people are obliged to convert the money in your personal pension
into an annuity at the age of 75. This is a very unpopular requirement.
Conservatives are committed to removing the obligation to buy an annuity.
The only condition is that people have enough income to ensure they do not
end up on means-tested welfare. And the value of the state pension is
increased and get pensioners off means-tested benefits, so fewer and fewer
will be affected by this condition.

4- More support for company pensions
The Government should issue bonds which are linked to average life
expectancy, so would pay more with increased longevity. This would mean that
company pensions and insurance companies need not hold such large reserves
to cover liabilities in case their pensioners lived longer than expected.

ENDS.